Private payrolls rose more than expected last month
Futures on the Dow Jones Industrial Average (DJIA) are trading well above fair value before of a busy economic day on Wall Street. Already, traders were hit with better-than-expected ADP jobs data -- which showed private payrolls jumped by 250,000 in December, compared to a consensus estimate of 188,000. After notching a new record high yesterday alongside the S&P 500 Index (SPX) and Nasdaq Composite (IXIC), the Dow could take aim at 25,000 in today's session, ahead of tomorrow's all-important nonfarm payrolls report.
Continue reading for more on today's market, including:
- The must-see buy signal for this Apple supplier.
- Blackberry's high-profile partnership put the squeeze on shorts.
- Analyst: This restaurant stock could hit new highs this year.
- Plus, Model 3 woes weigh on Tesla, another stock getting a blockchain boost, and a Snap stock downgrade.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.14 million call contracts traded on Wednesday, compared to 612,481 put contracts. The single-session equity put/call ratio jumped to 0.54, while the 21-day moving average remained at 0.57.
- For the second time, Tesla Inc (NASDAQ:TSLA) delayed its Model 3 production target of 5,000 vehicles per week, saying the goal will not be met until the end of the second quarter. The automaker also reported lower-than-expected fourth-quarter Model 3 deliveries. In reaction, Tesla stock is down 3% in electronic trading.
- Shares of Cogint, Inc. (NASDAQ:COGT) are up 35% ahead of the bell, set to open at a two-year high. The data analytics firm announced a strategic partnership with blockchain technology firm Dragonchain.
- Cowen and Company downgraded Snap Inc (NYSE:SNAP) to "underperform" from "market perform," and lowered its price target by $1 to $11 -- a more than 28% discount to last night's close at $15.31, and well below the stock's Aug. 14 record low of $11.28. The brokerage firm cited a survey in which 96% of respondents preferred Instagram stories over Snapchat, and as a result, SNAP stock is down 2.6% in pre-market trading.
- Today's jobs data also included a modest climb in weekly jobless claims. The holiday-delayed crude inventories update and the Markit services purchasing managers index (PMI) will also be released. St. Louis Fed President James Bullard is due to speak this afternoon. Monsanto (MON), Sonic (SONC), and Walgreens Boots Alliance (WBA) make up the earnings calendar.
Tokyo Stocks Hit New Highs
Stocks in Asia had another good day thanks to the record-setting session in the U.S. Leading the way was Japan's Nikkei, which rallied 3.3% to hit fresh 26-year highs after the long New Year's weekend. Hong Kong's Hang Seng also hit new highs, closing up 0.6%, and the Chinese Shanghai Composite added 0.5% thanks in part to upbeat economic data for the services sector. However, South Korea's Kospi fell 0.8%, as shares of Samsung Electronics were under pressure.
The gains are even more impressive out of Europe. On top of rallies from U.S. and Asian shares, European benchmarks are getting a lift from rising oil prices, as well as strong data from the services sector for the eurozone. Energy stocks are leading the way, while automakers like Fiat Chrysler are also outperforming. At last check the FTSE 100 was flirting with fresh highs, up 0.1%, and the French CAC 40 and German DAX were sporting respective gains of 1.3% and 1.1%.